Russia to Cut 2015 Budget by Around 10% Following Decline in Oil Price

Government Will Use Reserves to Cover Expected Budget Shortfall, Deputy Premier Says at Davos

Russia’s government will cut its budget by around 10% this year, and maybe by as much as 15%, as a result of the sharp decline in oil prices, and it will also use reserves to cover some of the expected budget shortfall, Deputy Prime Minister Arkady Dvorkovich said Wednesday.

Speaking on a panel organized by The Wall Street Journal at the World Economic Forum in Davos, Mr. Dvorkovich said the government is less susceptible to swings in oil prices than before because of the reserves that have been built up in recent years.